Dr Henry Kofi Wampah – first deputy Governor of Bank of Ghana
Three hundred and eighty three thousand (383,000) investors made up of local and foreign investors and corporate investors presently invest in Government of Ghana securities including Treasury Bills, notes and bonds.
The investments are kept in the Central Securities Depository (CSD) which provides safety for the securities.
Though the numbers are good, Governor of the Bank of Ghana, Paa Kwesi Amissah Arthur said it will not sit idle but synchronize securities settlement to make the market more attractive.
“Recognizing that the Ghana market is too small for the co-existence of two distinct depositories, we need to start a process of merging the operations of Bank of Ghana’s depository with that of the GSE for even more efficient cost of delivery.”
Mr. Amissah Arthur disclosed this at the launch of the CSD, which has been operating as an internal unit of the Bank of Ghana with its logo and website.
The CSD was launched in November 2004 and marked the commencement of an electronic auction bidding system for government securities, a development that has revolutionized the auction system for debt instruments.
Professor Newman Kusi, Special Advisor to the Minister of Finance and Economic Planning, for his part, said the establishment of the CSD over the last six years has led to more transparency in the operations of the government securities market, thereby improving investor confidence and efficiency in debt management.
The CSD, he added, has also played a cardinal role in the hedging of the country’s oil by offering custodial services in the hedging agreement processes, which has brought significant benefits to the nation.
He mentioned that the CSD system has brought about a reduction in risk in the banking sector to the extent that banks can now use securities as collaterals to beef up their reserve requirements as demanded by the Bank of Ghana.
“Indeed, government recognizes the CSD as important machinery for ensuring efficiency and promoting accountability and transparency in the management of the country’s capital market.”
He gave assurance that government will offer support to promote the development of the country’s financial market activities.
Dr. Kofi Wampah, First Deputy Governor, who doubles as chairman of the CSD, said his outfit will collaborate with the Ghana Stock Exchange (GSE) depository with a view to an eventual merger.
The CSD mitigate risks associated with securities settlements and engender confidence in the market, thereby attracting investment into economies in which they operate.
By Charles Nixon Yeboah